Concerns Over Crypto Staking Raised Amid Industry Backlash

According to PANews, Amanda Fischer, a former chief of staff under ex-SEC Chairman Gary Gensler, expressed concerns on Monday about the potential for a Lehman Brothers-style collapse in the cryptocurrency sector due to liquid staking. Fischer highlighted that the SEC's stance acknowledges the risks of rehypothecation, as liquid staking creates synthetic tokens through intermediaries, allowing assets to be reused and amplifying risks in a decentralized environment. This perspective has been met with strong opposition from the cryptocurrency industry. Expert Austin Campbell argued that many policymakers still view cryptocurrencies through an outdated lens, emphasizing that regulation should focus on identifying who holds control. Blockchain attorney Kurt Watkins criticized Fischer's interpretation as exaggerated, noting that the SEC's interest lies in specific liquid staking setups. Fischer's comments have also drawn criticism from notable figures in the cryptocurrency field, with some accusing her of being contradictory, misleading the public, or either misunderstanding or intentionally misrepresenting the situation. Fischer is currently affiliated with Better Markets, a policy group known for opposing a U.S. Bitcoin spot ETF.